Note

Earnings

Per

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share (“diluted EPS”) is computed similarly to basic earnings per share, except that it includes the potential dilution that could occur if dilutive securities were exercised. Potentially dilutive securities include common shares related to stock options and RSUs (collectively “stock awards”). Stock awards are excluded from the calculation of diluted EPS in the event that they are subject to performance conditions or are antidilutive.

The impact of the assumed conversion of the Notes calculated under the if-converted method was anti-dilutive, and as such shares underlying the Notes were excluded from the diluted EPS calculation for the

three

and

six

-month periods ended

September 30, 2019.

The following table presents a reconciliation of the denominators used in the computation of basic and diluted earnings per share (shares in thousands):

	Three Months Ended September 30,				Six Months Ended September 30,
	2019		2018		2019		2018
Net income available for shareholders	$	3,062	$	994	$	7,659	$	5,224
Weighted average outstanding shares of common stock		4,155		3,850		4,029		3,833
Dilutive effect of stock options		156		188		166		183
Dilutive effect of non-vested shares		10		8		10		13
Fully diluted shares		4,321		4,046		4,205		4,029

Basic	$	0.74	$	0.26	$	1.90	$	1.36
Diluted	$	0.71	$	0.25	$	1.82	$	1.30

The following stock awards were excluded from the calculation of diluted EPS:

	Three Months Ended September 30,				Six Months Ended September 30,
	2019		2018		2019		2018
Assumed conversion of convertible debt		331		--		166		--
Stock awards that were anti-dilutive		29		1		19		24
Stock awards subject to performance conditions		18		11		15		7
Total stock awards excluded from diluted EPS		378		12		200		31